Investors highlight measures to improve market stability

Despite investment opportunities in the Nigerian equities market, given the relatively low prices of stocks, 2020 saw a total foreign outflow of N481.93 billion against an inflow of N247.27 billion while in the month of February 2021, foreign outflow of N39 billion from the equities market was recorded compared to an inflow of N23 billion.

To achieve stock market stability, investors have urged the government to promote national savings culture through incentives that would ensure improved patronage in the retail segment and increase investment in the market.

Specifically, the President, of Standard Shareholders Association, Godwin Anono argued that long-term savings would spur activities in the primary market segment and accelerate economic growth, noting that the level of savings in an economy has a multiplier effect on its investment.

The investors, who expressed worry about the illiquidity constraint that is currently besieging the stock market, stressed the need to generate more savings within the country through incentivised voluntary measure to substitute foreign capacity.

Furthermore, he added that it is desirable for the government to seek how to moderate the influence of foreign portfolio investors in the Nigerian capital market by boosting increased domestic participation in the market.

The Chairman, Integrated Supreme Shareholders Association of Nigeria, Owolabi Peter argued that there was also a need for market participant to explore various mechanisms and mobilise savings in order to boost liquidity in the market..

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